Congress announced that the FUTA surcharge rate will no longer need to be paid. Employers have paid this surcharge for many years and this .2% will no longer need to be paid. Employers have been paying 6.2% on the first $7000.00 of each employee’s annual wages for FUTA. Now employers will only pay 6.0% effective July 1, 2011.
The IRS is currently revising forms for the two separate rates.
For more information about this please refer to Section 14 in this IRS publication www.irs.gov/pub/irs-pdf/p15.pdf